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spk_0: ladies and gentlemen thank you for standing by and welcome to the see sized entertainment inc twenty twenty one third quarter earnings conference call at the by all participants are gonna listen i'll be back after the speaker presentation level be a question and answer session as a question during the session you will need to press are one on your telephone our would like to try to call of richer moderators day ryan acting senior vice president of finance treasury and investor relations sir he may begin
spk_1: but he ran and good afternoon everyone on the call while the door common goal to discuss or third quarter twenty twenty one earnings afternoon definitely issued a press release announcing our financial results for the period and in september thirty twenty twenty one copy of the press release is available on the best or investor relations section of our website that investor that caesar's dot com as usual joining me on the call today or tom read or chief executive officer ethnic or on our president you chief operating officer and brett younger are cheap and natural officer before i couldn't turn the color and anthony i would like to remind you that during today's conference call we may may certain forward looking statements about the company's performance such forward looking statements are not guarantee the future performance and therefore one should not place undue reliance on them for looking statements are also subject to the inherent risks and uncertainties that could cause actual results to differ materially from those expressed for issue information concerning factors that could cause actual results to differ from those disgusting are forward looking statements you should refer to the cautionary statements contained in our press release as well as the risk factors contained in the company filings with his cures exchange commission caesars entertainment undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances that occur after today's call also during today's call the company made his got certain non get financial measures as defined by se si regulation g the get financial measures most directly comparable to nine get financial measure discussed and the reconciliation the differences between each non get financial measure and the comparable gap financial measure can be found in the company's website and investor that users that com by selecting the press release regarding the company's twenty twenty one third quarter financial results i will now turn the call anthony thank you brian have and good afternoon everyone on the call the third third quarter twenty one with another strong quarter we delivered one point o four billion of adjusted a bid on the quarter excluding feeders digital which represented a quarterly record for brick and mortar properties thirty one of our fifty one property set a record for the highest third quarter a bit off while thirty two set a record for the highest que three bid on margin starting with las vegas demand trends remained exceptionally strong through the quarter leading to an all time quarterly record of five hundred million in adjusted a bid on our lost a segment excluding real rent payments he but i improved forty four percent versus the third quarter twenty nineteen and margins improved fourteen hundred basis points to fifty percent to occupancy preclude three with eighty nine percent with weekend occupancy and ninety seven percent and mid we got him and see eighty six percent looking ahead and we remain encouraged by booking trends into twenty twenty two and beyond while group attrition remain higher than normal we began to see conventions returned to las vegas in the third quarter and the segment representative price approximately ten percent of occupied room nights a dramatic improvement first the first half of twenty one we continue to expected to a gradual recovery in the segment leading into next year and we're encouraged as group and convention revenues on the books for twenty two continued apace nicely ahead of nineteen demand for the caesar's form is exceeding the original underwriting expectations with over one hundred seventy five events but currently representing one point eight million room nights and over six hundred fifty million of revenues for all future periods seventy six percent of his business is new caesar's turning to our regional markets operating results remain strong especially in markets ny impacted by severe natural disaster events
spk_2: adjusted a bit i exclude in new orleans lake tahoe and lake charles increased thirty five percent versus twenty nine team with margins proven by a hundred sixty best to thirty eight percent on a same store sales basis we achieved the higher the third quarter he does anybody margin in the regional segment in the history of the company
spk_1: in or caesar's digital segment we generated over three billion a volume ninety six million of net revenue and injected he but i'll often one hundred sixty four million sports betting and i casino know handle a split roughly fifty five forty five ninety percent of our handle was from mobile sports betting in a casino
spk_2: where laser focused on scaling or digital business or aggressive customer acquisition during our first false horde season post launch or season branded apps and nine states while customer acquisition and handle exceeded our internal expectations net revenues are negatively impacted by directed promotional investment nod and profit boost competitive pricing strategies and lower than historical hold in certain markets
spk_1: we're please our sports betting handle share and eight states operating on liberty liberty platform has increased to twelve percent through september arizona has no report is therefore not including the stats
spk_2: or national market share through september including all legal i sports betting states sit at seventeen percent
spk_1: following the exciting launch a retail sports betting and we the and on sunday were now offer sports betting and twenty jurisdictions fourteen of which are mobile importantly we expect to complete the migration of our legacy apps and washington dc nevada pennsylvania pennsylvania illinois to our liberty platform and twenty twenty two we're also excited be rolling out enhance i casino offerings in the from fourth quarter following anticipated regulatory approvals related to the release of new games in new jersey mission in west virginia our expanded game portfolio be accompanied by significant improvements to our an app marching technologies on the development from were making great progress on our new lambaste facility in lake charles the significantly upgraded property should be completed and ready for business in the fourth quarter of twenty two
spk_2: in new orleans construction worker started on our new hotel tower and property upgrades in las vegas the remodeling of the entrance to caesar's palace is making great progress and we look forward to a dramatically improved arrival experience sometime in key one of twenty two
spk_1: in indiana where well underway with our casino expansion in indiana grand which would be finished by january of twenty two and finally in atlantic city or four hundred million capital plan is actively moving forward with remodeling room towers and setting the stage for exciting new food and beverage and entertainment options as we look to twenty twenty two wifi several tailwind in our business and we remain optimistic about further visitation games as consumers returned to her property once covert fears of fully subsided we remain confident and eventual return the convention customer de las vegas and our destination markets lastly weird sided to rebrand a handful of our properties and twenty twenty two using flagship brands from the caesar's portfolio to even further elevate the customer experience
spk_2: i am extremely proud of our operating teams their execution and are exceptional get service during the third quarter with that outrun the the tom front some additional and sites on the core
spk_3: thanks as a good afternoon everybody we free released a for our bond deal in earlier the quarter he had two months of brick and mortar operations effectively so i'm going to be lighter on time and son brick and mortar and go a little deeper into digital and a brick and mortar side
spk_4: is it
spk_3: if i didn't hit new orleans and we didn't have the killed or fire entire how we had another billion one knows
spk_2: brick and mortar either die in the quarter on we had it extremely strong hoarder demand remains particularly robust in regards to norland and ta ta how has pretty quickly recovered back to above twenty nineteen levels not quite as strong as it was free firebird continuing to build in new orleans recall the we have significant operating leverage their that works in both directions you've got a minimum guaranteed tax payment to the state and city in louisiana so new orleans rather even dog continues to trail nineteen although it is continuing to recover as well as going into the storm we were do and eleven twelve million dollars a month in a bit odd a new orleans and now we're more like five or six and building i'm
spk_3: vegas had a record quarter beating the record of the a second quarter so for twenty four went to five hundred but he but da five eleven adding bad the real rent payment is anthony said we were fifty percent margin again
spk_5: that was in spite of us imposing occupancy cats mid week
spk_6: so then we thirty
spk_2: we can calibrate the supply with our housekeeping services we are struggling across the country to hire guest room attendant vegas is no exception so even with the operating cash we said a quarterly even da record he in october vegas had the strongest even da month in the history of caesar's are so the strength has continued and october regionals as well were still pacing up in the neighborhood of forty percent over nineteen so feel very good about the set up going into twenty two
spk_3: custer to me into customer demand remain strong obviously the virus numbers have subsided considerably over the past six to eight weeks and we're seeing some pick up and demand as bad as that rolls through
spk_2: for digital i spoke to digital in name
spk_3: second quarter call in terms of what you should expect from us i guess a dm we're anticipating investing in terms of each humility but doll losses north of a billion dollars into the digital segment and generating cash on cash he but doll returns at maturity north of fifty percent and what we saw i in terms of opportunity for us was have the ability to activate or fifty plus properties are fifty thousand plus employees and most importantly are sixty five million strong caesar's rewards database and that's what we set out to do
spk_2: so as i go through these numbers i'm mean talk about how i look at this business in terms of measuring what we're doing vs expectations i wouldn't
spk_3: even though we're extremely encourage than the numbers that i may be talking about our the head of our an internal expectations as we launched his
spk_2: it's very early and this is a long game so we expected to not be a straight line but what we anticipated was in states where we offered our liberty technology where we were starting on equal footing
spk_3: and where we had existing thread a strong database that those would be our most effective markets and that describes arizona to a t which launched a during the quarter has not published results yet but we think that the results will show as in excess of the handle numbers for sending jumpers and anthony described earlier in the liberty states in total and i'm looking at handle because in the current customer acquisition environment hold is volatile not just because of the that the results of the sporting events but because of the booze and the promotions that you offer so i'm mean when i talk about share on talking about handle share so in our liberty states handle share has almost doubled since launch that's your in the sexes to about twelve percent of mobile market share that's without arizona as i said i'd expect that to exceed the average and bring it higher ah arizona is art second or third strong it stayed behind on nevada and iowa where we have incumbent and van advantages and that reflects exactly what we expected states where we launched but we are later the game but did have liberty were seeing continue continued build and market share on the order of if two to five hundred basis points depending on the market since we launched importantly if you're looking at analysis that looks at market share across the ah the entire us market realize that we are not competing for the time being in pennsylvania illinois who which are two of the biggest markets out there when we launched the liberty platform was not approved in either state it will be approved in the first half for twenty twenty two is our expectation but we didn't want to spend money guiding customers do an experience that wouldn't would not be what we wanted to offer them and so easy our share in those markets sucks for lack of better term if you look at where our customers are coming from when you're spending like we're spending on
spk_2: advertising and promotion
spk_3: you're you're going to get lots and lots of customers that show up at your door a lot of them are not going to be worth a lot of value if you look at our customer by count caesar's rewards customers are somewhere around a third of our total new deposits since we are we launched by handle caesar
spk_2: rewards customers are about half of our handle sensory lot so validating that we think caesar's built a system over two decades that identified the valuable customers that everyone is out there searching for we're seeing that in our experience and that exp
spk_3: really encouraging as we look to the future pardon the performance in arizona also encouraging as we look to states like louisiana which just launched retail on sunday will launch mobile in the near future marilyn will come online soon as well these are states where whereas similar position to where we were in arizona sweet expect to perform well when we show when we give you are seventy percent total market share that's everything nets the saints were not doing well and like pennsylvania illinois that are not liberty state would also includes nevada which is not a liberty state than where we have
spk_7: was tremendous market share were not adding fantasy numbers in there were not adding a horse racing business in there were showing you pure sports betting handle and if you think about what we're doing it what we did in sports in the corridor are handle
spk_3: for the third quarter was a little over a little under one point seven billion a little over one point seven billion dollars for the full quarter in october alone we did over a billion three of handle so we think we're continually generator own momentum and when i talked about the return on investment obviously we had i'm a model that showed where we expected to get and market share in that pace in which we expected to get there so you can see from me but doll lost that it's relatively in line with what we were telling people to expect but our ramp in market share has been as a exceeded our expectations in terms of its pace now than the question did to that is it does that mean there's a broader market bigger market sheer number down the road and the canada answer is we don't know right now but what we do know it know is were gaining share oh at a pace stronger than we expected given the investment that we met so encouraging results from sport he and i casino if you want if the if you want to think about somewhere where we have tracked a little bit below plan we inherited a platform in i could see know that was non competitive from a game offering standpoint and so again we've not spend money advertising and promoting our i casino business until we get the approvals we need to offer a broader array of games that competitive with our peers that are out there we expect that will take place before the
spk_2: end of this year and so then we can talk with and frankly ah more relevant as to what's happening
spk_3: and i to see know we continue to perform strongly in new jersey and i can see another we have not pushed a launch in a casino beyond new jersey today so in summary were extremely encourage ball brick and mortar and one thing i should say about your rapping this digital business into the physical enterprise the employees that have leaned
spk_2: just an outstanding job of leaning into this launched for us and caesar's awards activating the database this is not something we just flip a switch this is gonna continue to build momentum as the quarters pile up with wheels i think we've got a good job of by getting our message out they're getting our brand out there and were encouraged to see the customers respond and with that i'll flip the breath they saw three eta active third quarter of emanate capital markets activity on september ninth we out for an agreement to sell the non us efforts of william hill for a day holdings for two point two billion pounds bali repayment of debt we will receive net proceeds of approximately one point two billion us dollars we expect this transaction will close during the first quarter of twenty twenty two
spk_8: on september tenth we priced one point two billion of new unsecured notes at afford five eight per cent coupon and we repriced one point eight billion of see our feet or long be alive or plus three fifty a decrease of under bit from the new notes alongside five hundred million of cash on hand were used to fully retire one point seven billion of existing crc nuts in late september and october we continue to use excess cash on hand to permanently repaid death to one hundred million of open market purchases of our existing eighteen and eight and an eighth notes year to date and reduction is approaching one billion which has resulted in approximately seventy five million of annualized interest expense savings net proceeds from the sale of way mills nine us business will be applied to debt reduction in the first half of twenty twenty two yielding further interest expense savings and enhance free cash flow
spk_9: our twenty twenty one county or cap expand excluding atlantic city is now three hundred fifty to four hundred million which includes approximately seventy five million procedures digital this is simply a chef been timing of plan cap callbacks from twenty twenty one twenty twenty two driven in part by the hurricane that impacted our new orleans expansion and covered related to
spk_3: black shorts found that thought thanks bread and to talk a little bit about twenty two when we close the caesar transaction but obviously we close into an uncertain environmental with a highly leveraged capital structure and we needed to bridge to the point where we be generating a lot of free cash flow to pay down that daphne see you heard brad talk about the beginnings of that i am twenty one twenty two is going to be a massive cash flow generate cash generation and deployment year for the company as read said we've got the way in hell asset sale unsettling he been between the way in hell nine you as business the neo games but sale we got about a billion and a half of proceeds to deploy up the bulk of which will be coming in twenty two we're generating in the brick and mortar business something in the neighborhood of two million dollars a year of free cash flow right now and so if you're looking for now till i am from and of third quarter to end of are
spk_2: twenty two your well over two billion of cash their we also think this is an opportune time jackson dude on our strategy of a strip asset sale so you should expect us to put that in motion in the early part of twenty two and if you look at all and and
spk_3: as bread said you should expect us to be aggressive on the refinancing front in twenty two as well which should dramatically lower our cost of death and so if you add all of those are we should have well in excess of five billion dollars of cash to deploy in twenty two some of that will be spent in the digital business some old and of that will be spent on capital projects that drive our ally in the portfolio but the vast majority of that's cash is gonna go to pay down debt it where we can be in a position to the be pushing almost half of our conventional death off the balanchine and ultimately reducing our cash interest expense by the and twenty two to three or four hundred million dollars a year less than it was when we closed the transaction
spk_2: so we are extraordinarily excited for what's to come in twenty two happy very happy with the results that were reporting to you today and happy to answer any questions or you have
spk_0: operator can we open the line for questions ladies and gentlemen if you have a question that this time we specify than a number one touchdowns on it if you wish to remove yourself from the game a the fact
spk_10: you face question comes from the line of i center alley and
spk_11: than anything hey guys thank you on some and i know it's it hasn't been a long time since she kind of started but but given the few months of the ramp and route to your expectations on the sport side and and kidding aside the i casino cyberstalking
spk_3: when you believe it or you could start to see that business term positive in terms of of either dark contribution is it is it as soon as twenty twenty three or are we looking you know kind of the on that in and out in the twenty four twenty five
spk_11: i'm expecting football season and twenty three power okay great and then i'm you know you talked a little bit about the them the las vegas sale and and clearly the cops have been in of your patient says seemingly be paid off with what you've seen in terms of cops on it or anything special about the first half of of next year that are guard early next year that that you guys will will get aggressive in term
spk_3: of of looking to make that that transaction happen
spk_2: now it's really a matter of as we discussed we wanted to be marketing off and even da number that we're generating from the property not trying to bridge to
spk_3: yeah your some number that we've not done before so now we got a track record that we can point to in terms of what the property can generate and the deck is it and then the playing field is kind of and cleared with the or the cosmo and are your trades to where we should have
spk_11: a pretty robust oh we shouldn't ever encounter pretty road but robots demand for a center strip asset then frankly may be one of the last ones to trade for quite some time great and then if if i could time just just one follow up on as it pertains to kind of las vegas trends i'm from to cuda three que my more or less on clearly that describes or higher revenues were up nicely sequentially up acts what was was also up do you guys kind of think beat the current our backs run rate is is something that sustainable on these business volumes or or i know you you talked about staffing and and keeping occupancy kind of in check during the week said to adjust to labour levels but is is kind of the the current our backs environment that you you had a three q and
spk_3: las vegas specifically as is that a a place where you think you can find to maintain going forward i do but frankly i'd like to see our bags come up some as we feel our
spk_11: particularly guest room attendant positions so that we can unlock the capsule in the mid week and i'd expect that to happen at some point in twenty two
spk_0: pressure to come thank you
spk_12: your next question comes from the line of job grass and jp morgan lana says it
spk_11: a good morning everybody tom it needed we can the of talented little carlo top and that sort of unsustainability of margin was there as a big difference between the the the margin at the rate las vegas in the regional
spk_3: he overseas what's he going into the beginning of the three que routing whether impacted areas
spk_13: can you and margin wondered margin and hit rate know honey we were pretty same all throughout the corner job in into october were still run and forty percent consolidated even da margins
spk_11: a great and then
spk_14: you mentioned by the end of of this year you would have a larger quantum of competitive i see been launched
spk_3: let you talk about before can you talk about what what sort of think the the incremental ya investment in in in that part of the billion dollars of punitive losses in height you think of that as you move sequentially from in september and october to the end of the year in in digital more broadly and from that what that incremental that might be so that was built into the guidance as a framework i gave for build of the entire business as you know if to the accent those are the bulk of those are third party games their participation from a revenue standpoint so that was all built and it's just a question of
spk_15: of timing of getting them through the approvals in the various things
spk_0: right they get my workout
spk_16: thanks job yeah next question comes from know and steve we saw sense the phone line is as him
spk_2: yet he gets a good afternoon i'm so so town called out that you know that that the billion dollar investment or spend the level and digital in your last call that you know that would last month they eat it and quarters i think that's which talked about that
spk_3: i guess the question is not with what you've seen so far the progress you've made with share your are you still comfortable with that all and investment and it will that be sufficient or i guess that you know another way of good as added ya puts a two years down the road your marketshare doesn't pan out where you think it's gonna be good that one billion invest met of actually turn into a be much higher number or this point you just don't see that be the case no i'd say it's the opposite of what you describe steve is
spk_16: post launch the bulk of our spending now is success based it's tied to customer acquisition so if we do worse than were expecting from a share perspective i'd expected the ultimate investment will be less if we do better than we exp from a share pushback do i expect the ultimate investment to be more but obviously the return will fall in both directions oh get understood it is it and then second question at at you time he called out of five billion dollar number of of cash to deploy next year and that assumes a vegas asset sale
spk_3: i guess that they the question there is no you you've talked about potentially letting go more than one asset in las vegas in at this point is that still the case or that kind of one in twenty two and then go from there is that or their the possibly that you could eventually do more than one in twenty two well with the caviar that as public company every assets for sale every day there's some confusion there were two rovers in me
spk_17: the team agreements at the close we have never said we expect to sell a second property nor do we expect to at this point we'd expect to sell a single property and be done but we'll assess where we are in the bar what our balance sheet looks like afterward and how we feel
spk_16: oh allowed our future prospects but i think it'll be limited to one asad and also jersey go back to where i talk about deploying capital and twenty two i think it's going to be well in excess of five billion not five nine five million
spk_0: on the nose
spk_18: oh get perfect thank them for
spk_16: your next question comes from nine have some as alan some like and how me he had anything
spk_3: thanks op i think i heard correctly that usage data over a billion dollars or it's raining and on the third quarter and that over a billion three of and all and october which made up my number implied that about fifteen percent us market share and tambor as i in the back or them cause they're twenty but than that tolbert i'm telling you that part that all of a bet you realize what sports book august second so like how the trajectory in the third quarter and at any color nobody nevada versus the rest of that states that the guy get a good review i'm covered the legacy be that edvard that you benefits he also be in terms of handle as you would expect the quarter built august was considerably bigger than july and september dwarf dog is because of the calendar is considerably more than september
spk_18: in terms of the states i've talked about on the liberty states we went from him in the sexes do about twelve in terms of handle market shares we're measuring it in total were about seventeen percent nevada share was flat over that time frame we are these lee hans very large share in nevada with didn't have any significant move in share keep in mind that is not a liberty state yet either
spk_2: eric they some and then just of my follow up please talk over i mean you gave them or what what's been going wow and the crock darwin awards customers but there cage i talking the without thing you know your your five dollars an hour with three bad yeah the commercial all that you know it at how are you i think they're doing
spk_3: it's hard to parse all of that you know from the commercial standpoint they measure unaided brand awareness and that's through the roof since we started the commercials basically ask a question is list sports what list company that you know opera a for sports books the amount of people percentage of people them with name caesar's today is dramatically higher than it was on august first year the individual promotions you know we're constantly tweeting knows i don't really want wanna for competitive get in the reasons get into what's worth the best and way
spk_19: has and work you should expect
spk_1: to see that continue we rolled out single game parlays which killed in nfl action is has been growing substantially as a percentage of our bags and that's very high whole business oh that's good to see and any as i'm sure you track is thomas has seen a thing
spk_18: never get improvement
spk_0: on the sports category rank on iowa something we were trailing we were roughly one hundred and fifty rank and now we're you know making great progress in between fifteen and twenty on the i of just a tremendous improvement there
spk_20: oh i forgot about much next question summers from the land of average illness and to this year then as them
spk_21: a town meeting as mad as a very much
spk_22: if very that the and capital difficulty fresh got there
spk_18: our ally
spk_2: market
spk_3: tax rates like new york he obviously that's going to influence your reinvestment ray you're looking for ultimately what's my return on capital but he didn't eat you can in the larger population stage high velocity hi
spk_23: ah participation
spk_18: you can conceivably make money at higher tax rates then in lower volumes things but obviously we prefer the eleventh we prefer the lower tax jurisdictions as an operator gosh
spk_3: once you reach a point where you
spk_24: tremors digital think about the size profitability of of a lot
spk_3: with that thoughts on a mature markets your goal
spk_25: in we've not been out there with the market share goal and don't want to start that today other than to make the point again that the target that we had in mind when we put out the metrics last quarter were gaining share much much quicker than we anticipated as we see
spk_26: are now
spk_18: the with the other that directions first
spk_7: she was
spk_2: point you start back around how do you think about what what
spk_3: so what killed his work with you as we as you long have you deposit in our app
spk_0: you're signing up for caesar's words in the vast majority of cases if you're not already a customer so we're bringing new customers into the system
spk_27: our expectation is our history has been that customer becomes sticky to the brand over time as they realize the benefits of what the rewards program brings them so we're looking at it from the standpoint of we think if you're thinking of lifetime value of a customer we think our lifetime value of a customer is going to compare favorably with our peers both because of the profile of the average caesar's or customers them is starting to dominate our handle and the length of time that are going to stick with the app because of the relationship with the rewards programs but we do know that you were going to lose some of these guys winner shopping from side to side for in which the best promo i can get tonight
spk_2: much your next question comes from the line of sean county and bank of america in nine open
spk_3: a good afternoon everyone on come just thinking about like the the ramp up in sonoma county non fair fight states or you are a little bit later
spk_2: talk me at a higher lily i did you try to give us some direction in a couple different away by a little bit about yeah how you expect yell or us to be able to monitor what you expect to see it the ramp up in some of those up you know really competitive existing states that you jersey the pennsylvania and michigan to the world to stash of those trained as we see that data coming in on every month and what what kp are you looking for to to guy continue to show our success and as market
spk_3: any we're looking at handle share for the time being in a few on your michigan went from
spk_27: three over six in tennessee went from two to almost ah eight
spk_3: virginia went from six to ten so you're you're seeing any in the states where we jumped in lane that we're we're gaining share
spk_2: materially early on and expect that week we'd expect to continue to glaucoma share over time so there's really no stain i can point to where i'd say
spk_3: haven't seen me experience experiences launch that we're building share from where we were it's just in the case as yet the stating cheating a we talked about where were we were laid were starting from a low base and the cli is gonna take more time
spk_28: and my father be living on the costs i'd have obviously been a very visible with day the kind national ad buy that there's been some discussion already that there's been a pullback in added a tv buys on and and you've also talked about your performance marketing a little bit so suck i mean i am sure you got your own competitive
spk_0: if plan out there but how how do you think about i'm of the be switching some of that spanned through channels as your awareness yeah reaches leveled everybody going into your out there an eraser to focus on effectiveness is it is a right timeline to think about for daughter did yeah we're gonna how have you thought about it as buckets evolving overtime
spk_29: you should expect through this football season we're going to continue to be aggressively just filmed another around what we're calling season to of add that will start rolling out this month
spk_30: so you're going in we're going to be all over the place in terms of media where we hello
spk_2: where we've kept our powder dry is the advertisement that the media that was targeted toward i can see know until we get the product up to the standard that we won
spk_31: thank you very much
spk_2: your next question comes from the land of man called access some wells fargo and
spk_3: a i get they can take my questions and so can you imagine that the little bit arms of the you sign ups from the caesar wards about he remembers and we can he can he may be quantify that it was in numbers there and have you seen the you know to work and have you seen the new sign up the new players you know flow your property and to create more been on channel benefit as i said i'm the only answer the first question is no i'm not going to put in raw data on those numbers of and figure caesar's order first time depositors of then a quarter to a third of our first time deposits but as far as handle and then about half
spk_29: those are
spk_14: then brought in those are broadly wear wear a hat and as i said as you sign up for the app and deposit here prompted to sign up for caesar's wards and we're seeing him an extremely high up take in terms of of people signing up for caesar's awards and we're seeing
spk_32: cross visitation
spk_29: the a one of the areas where we're particularly active is the high end of the market and young large matters that are new to our system where we're willing to take large sports mats and we're seeing those customers make their way into our
spk_0: their high or i limit rooms as well so that's when an encouraging sign and we see mad all the way down at a low levels of the database as well
spk_33: got it and then just for my part i think for william hill in nevada biggest stuart lee had a rom you know thirty percent or so market share for sports fannie and says the i took ownership have you seen any changes an interview your partner's there and no one certainly grown a lot as well
spk_3: where about half of the bath got it thanks so much your next question comes from the line of david cat and jeffrey and hi i even everyone thinks protect my question i wanted to go back to cometary gone over a little bit on i gaming with you know the offering nothing up to what your standard as and i think early on you a indicate a breath of games was not what you wanted i'm from a
spk_34: technology and game engine perspective it are are those elements that you're still working on or is it really just a content offering no issue primarily
spk_33: there we are never stopping work done the nuts and bolts behind molto as be an eye gaming but the i gaming piece that were waiting on is virtually entirely clinton at this point and as his him hours
spk_3: getting through the bureaucracy in he stayed in terms of on getting the games approved on our house and this is a function of their this is not states dragging their feet your william hill in it's former allies as a uk domiciled in manage company didn't provide the resources to as business to develop fabio as be platform and the ice to platform to their fullest extent than so we're doing is providing the resources and ability to lead guy game
spk_33: and catch up with home as being understood and with respect i gaming that there is i believe a conventional wisdom that in a with fewer states and perhaps smaller share are smaller total handle the profitability and the ltvs of those customers etc you know can be equivalent to even better than l s b is that you know what your expectation is as we start to get some of those handle numbers and see some of their sheer numbers from you
spk_3: the are we are high gaming is is and has been the material profit generator in new jersey for us
spk_33: and we expect we would expect michigan pennsylvania west virginia as we roll out to follow that same path
spk_0: i won last one if i may which which as
spk_35: you know within sports betting and i gaming know that they the appearances it as you have a fully integrated no control over that enterprise a is is that correct or there it'll be to be participants in there that maybe in are driving certain aspects of your sports betting enterprise
spk_18: the only piece is the pan that's provided by neil games but that's a unique arrangement given our ownership interest in neo games where we have a dedicated team that works on only the caesar's pam add the onions
spk_3: perfect i thought once again as a question you or me depressed i wanna as such telephone and that star one i had stone telephone next question comes from the land of chad mean and some acquiring any an open i good afternoon thanks to take my question
spk_35: of out onto the digital questions just one on on canada specifically ontario another the marketing will be a little bit different up there are versus what we're seeing the united states i can you give us a sense of of how you think the market will shake out and any commentary around you know your rewards program membership up there
spk_18: just given that the our customer acquisition will be different than what we're seeing stateside effects
spk_3: so we're watching as you are as
spk_2: they go through the mechanics of how and role will roll out we anticipate that we will be among them the better position operators in ontario given our long management contract history with caesar's windsor so he has the a we have a large amount of ontario customers available to us and known to us through seizures want
spk_35: okay thanks and tunnel not sure if if you were anthony to mention their said and you're prepared remarks by on the regional markets i know a lot of the recovery has been driven by spend per visit vs visitation visitation have certainly been a laggard can you help us think about you know it visitation as if the recovery has plateaued
spk_36: code or if you're still seeing that improve as that fifty five and older customer i get comfortable coming back to your properties that you
spk_0: the i'd say the story has remained the same than spend per visit continues to be elevated and i'd expect that to remain the case as long as the you savings rate is about to add to what it's been historically we do expect you
spk_11: he a thin when you get a full retreat of coded on me retail side we we we do expect that there is significant portions of the database of never portion of the population that will then be willing to come to casinos that are not coming today
spk_3: we also expected as business travel returns we'd expect there to be a similar experience as pent up demand for business travel young once we've got to is minus and comprehend it thanks chat
spk_11: the next question comes from nine of defend family some goldman sachs and hi banks these are kind of follow up some additional questions earlier i get a you launch i gaming how are you thinking about who that customer is and how to ensure it's truly incremental revenues and profits versus kind of kit kat obliging the best
spk_3: yeah see we got a lot of experience there in new jersey that's gonna be relevant to was in other states if you think about the states were going to be rolling out in if we don't have a property in michigan we know we have had a single property that's not i'm large in pennsylvania and we don't have a property in west virginia so we don't expect that to be a material factor for us in those states that's helpful libya another follow up a know that you get a look at a detail about people spending on device and than in property there anything else that you can in or kind of provided from the thinking about how he there in terms of in a greater time on device or step up in frequency of bats as in a even launching thanks it's awfully early to the he's six saying anything definitively me in terms of that type of behavior considering we we really meant alive for sixty days here
spk_37: what i would say is that of things like digital customers
spk_0: a value being invited to brick and mortar properties you were doing a lot of that and the responses been overwhelming that doesn't happen in
spk_3: apps of our peers so we think and this is as i said earlier this isn't he just flip a switch this is you got activate as you get better at it every day and momentum builds but some of this stuff that we're seeing that's your small and need
spk_0: right now is gonna be significant drivers of value going for
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